Honeywell
Honeywell building

BY EMEKA EJERE

Honeywell Flour Mills has joined the league of companies defying the COVID-19 pandemic to maintain a good profit margin.

The food-producing company reported a profit after tax of N1.13 billion in its 2020 audited full-year financial result ended 31st March 2021, growing its bottom line by 73.1% from N650.49 million recorded in 2019.

In addition to recording double-figured growth despite the effect of the covid-19 pandemic on the Nigerian economy, it also crossed the N100 billion revenue mark in the review year. Its revenue for the period stood at N109.59 billion in 2020.

The reduction in the firm’s selling and distribution expenses during the period translated into a 39.1% increase in its operating profit from N5.5 billion in 2019 to N7.65 billion.

The company, however, spent a sum of N4.59 billion as employee cost, indicating a 12% increase compared to N4.1 billion recorded in the previous period, while also increasing its staff strength from 819 as of 2019 to 832 at the end of 2020.

A cursory look at the report, reveals that the entire revenue was generated from sales of goods within Nigeria, with none received outside the shores of the country. Notably, the company’s business operating segments are identified by three factories, with the Apapa factory generating the highest revenue of N85.02 billion in 2020.

The Sagamu plant followed with total revenue of N19.1 billion, accounting for 17.4% of the total revenue, while Ikeja generated N5.49 billion for the company.

Commenting on the results, Lanre Jaiyeola, the Managing Director of Honeywell Flour Mills, Plc., said: “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36% revenue growth and record-breaking success through sheer grit and doggedness of our workforce.

“We worked collaboratively towards the execution of our goals; improved production and cost optimisation, guided by a clear strategy and common purpose.”

We remain committed to ensuring the supply of affordable nutritious food products to Nigerians, and we continue to assure our shareholders of long-term profitable returns from Honeywell Flour Mills Plc,” he added.

Honeywell Flour Mills Plc is a leading food company producing, marketing, and selling food products in the fast-moving consumer goods (FMCG) space in Nigeria.

According to the company, the future of its business would be shaped by continued investment in innovative product development, advanced technology infrastructure, and operational efficiency.